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Buyers Head Into 2018 Facing Continued Pressure To Cut Costs

A Business Travel Show survey has revealed that buyers expect the continued pressure to cut costs while maintaining quality to be the biggest issue to impact them in 2018.

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Dec 11, 2017

Buyers Head Into 2018 Facing Continued Pressure To Cut Costs

A Business Travel Show survey has revealed that buyers expect the continued pressure to cut costs while maintaining quality to be the biggest issue to impact them in 2018.

The poll of 243 business travel buyers asked, “What is the biggest issue facing you over the next 12 months?” Cutting costs reigns top of the list for the third consecutive year, followed by an increased focus on duty of care for the second time in a row.

In third place (up five from last year) is rising hotel rates and, more specifically, availability. Rising airfares is at number six, a drop of three positions. Brexit – a new entry on the table in 2017 – features again in fourth place. Enforcing compliance continues to freefall down the table, from second place in 2016, to fifth last year and seventh for 2018. Unsurprisingly, GDPR – which comes into force next May – features on the list for the first time in tenth place.

“It’s not surprising to see cost cutting and duty of care as the top two challenges facing buyers over the next 12 months, especially given the recent spate of terrorist attacks across Europe and further afield; it’s simply not an opportunity for buyers to ignore traveller risk anymore, it must be a priority for them, their organisations and their partners,” said David Chapple, Business Travel Show event director.

“Buyers have been so vocal about the debate around hotel availability this year that it was also not unexpected to see the issue around hotel rates rate so highly. But I was a little surprised to see Brexit so high on the table, given that many people feel the initial instability it caused for corporate travel was short-lived and the after effects will remain somewhat of an unknown until March 2019 at the earliest.”

One In Five Buyers Increased Serviced Apartment Use In 2017

A recent poll carried out by the Business Travel Show in collaboration with Association of Serviced Apartment Providers (ASAP) ahead of the ASAP Convention on 6-7 December.

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Dec 04, 2017

One In Five Buyers Increased Serviced Apartment Use In 2017

One fifth of corporate travel buyers increased their use of serviced apartment suppliers in 2017. This is according to a recent poll carried out by the Business Travel Show in collaboration with Association of Serviced Apartment Providers (ASAP) ahead of the ASAP Convention on 6-7 December. A similar number of buyers directed more spend to budget hotels and over a third (37 per cent) to mid-range hotels. Contrastingly, 28 per cent used five star hotels less compared to just 12 per cent on serviced apartments.

Q1. When compared to the last 12 months, how has your use of the following suppliers changed?

More

Same

Less

Don’t use

2017

2016

2015

2014

2017

2016

2017

2016

2017

2016

Five star hotels

13

31

41

28

28

Sharing economy

18

36

8

38

91

Serviced apartments

20

39

19

13

25

75

12

4

42

4

Mid-range hotels

37

87

47

9

7

Budget hotels

22

17

60

37

77

8

1

32

0

When asked why they book serviced apartments, 57 per cent of respondents said it was because they provide value for money. This was followed by convenience, flexibility, extra space and long-term suitability. While the top five reasons remained the same as last year, their order has changed, with convenience falling from the number one spot.

Q2. Why do you book serviced apartments?

2017

2016

1

Better value for money

Convenience of self-catering option

2

Convenience of self-catering option

Better value for money

3

Flexibility to experience the location like a local resident

More space

4

More space

The flexibility serviced apartments allow for experiencing the location like a local resident

5

Long term suitability

Long term suitability

Of those buyers who do incorporate serviced apartments in their programmes, more are allocating a higher percentage of their budget towards them, corroborating the above statistics (see below). For example, in 2016, 7 per cent of buyers spent between 11 and 25 per cent of their budgets on serviced accommodation. This year, that rose to 13 per cent, while the number of buyers spending between 26 and 50 per cent remained consistent.

Q3. What percentage of your accommodation budget is spent on serviced apartments? (Answered only by those buyers who use them).

%

2017

2016

Less than 10

84

90

11-25

13

7

26-50

3

3

With 42 per cent of buyers not using any serviced accommodation suppliers, however, and 38 per cent still vetoing sharing economy providers (albeit a massive drop from 91 per cent last year), the poll of 243 buyers show there is still a way to go for alternative accommodation providers to be an automatic choice for travel buyers.

David Chapple, event director, Business Travel Show, said: “Our research is great news for the serviced apartment community and is testament to the work ASAP has done in raising awareness of, and building trust in, the industry and its suppliers.

“It’s also an honest reflection of the state of the market. For the last two years, our annual survey of travel buyers has shown that the number one challenge facing them is cutting costs while maintaining quality and value for money. With this in mind, it’s no surprise that more buyers are looking to alternative and budget accommodation providers and incorporating these in their travel programmes alongside more traditional four and five-star business hotels.

“Of course, the demographic of travellers is also changing with younger executives enjoying the flexibility and convenience offered by alternative accommodation – something they have become used to as leisure travellers. We have understood and – to a degree – preempted this shift at the Business Travel Show, and accommodation providers from all sides of the market can be found on the show floor for buyers to talk to, including Melia, IHG, Best Western, Airbnb, NH Hotels, Premier Inn and the serviced apartment providers in the ASAP Hub.”

James Foice, chief executive of the Association of Serviced Apartment Providers, added: “It’s absolutely fantastic to see that 20%, or 1 in 5, of corporate buyers have increased their use of serviced apartments this year. The popularity of our serviced apartment product has never been higher with the significant increase in supply this year – more than 2,000 new serviced apartment units have opened right across the UK in 2017. 17% growth in supply is forecast by 2020 so this trend is all set to continue. More corporate and leisure travellers prefer this more flexible way to stay offering a bit more space to live, work, sleep and eat.

“It’s particularly interesting to see ‘value for money’ coming out as the top reason why corporates are using serviced apartments. We find more and more companies book two-bedroom/two-bathroom apartments and colleagues will share the apartment, making it a more cost-effective choice as well as giving employees working away from home some companionship.

“Our ASAP Quality Accreditation Programme - under which operators are assessed by the Association’s accreditation service, ISAAP, to ensure they fulfil all their duty of care, compliance and health and safety requirements - is also proving to be a very important additional benefit to corporates.

Buyers will find the ASAP Hub at the Business Travel Show, including Acomodeo, BBF, City Apartments, Fountain Court Apartments, Frasers Hospitality, Marlin Apartments, The Harrington Collection, Roomspace and StayCity. Other serviced apartment providers at the show include Go Native, The Serviced Apartment Company, BridgeStreet Global Hospitality, Pine UK Holdings, DBA and Oakwood Worldwide.

Coporate Travel Management Expands in Europe With New Paris Office

CTM is expanding its presence in France with a move to new, significantly larger premises in Paris

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Dec 04, 2017

Coporate Travel Management Expands in Europe With New Paris Office

Global travel management company Corporate Travel Management (CTM) is expanding its presence in France with a move to new, significantly larger premises in Paris this Friday, 1 December.

The move follows an incredible year in Europe for CTM; the company’s top performing region with a turnover of £504 million and growth of 202 per cent.

“These are really exciting times for CTM in Europe – we are winning more local, pan-European and global clients thanks to our passionate, highly skilled team, innovative technology and track record for delivering ROI. Along with the move to bigger offices, we are also taking this opportunity to upgrade our IT and telephone systems, allowing us to even better service our clients in the region,” commented Mallory Gerard, General Manager, CTM France.

Business Travel Show Calls On Start Ups To Apply For Launchpad

Show organisers commit to investing in free stands for up to 15 start-ups

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Nov 16, 2017

Business Travel Show Calls On Start Ups To Apply For Launchpad

As registrations open for Business Travel Show, the show’s organisers are calling on business travel start-ups to apply for a free stand in its Launchpad. Launchpad will showcase up to 15 of the most innovative and exciting start-ups to the show’s 7,500+ attendees.

Launchpad premiered in 2016 with eight exhibitors receiving a free stand, extensive marketing support, exposure to the show’s attendees and an entry into the inaugural Business Travel Disrupt Award, the winner of which receives a full-sized stand worth £8,000 at the following year’s event. Last year, the Business Travel Show increased its investment in innovation by doubling the size of its Launchpad. This means that up to 15 business travel start-ups can now exhibit for free each year.

Last year’s Business Travel Disrupt Award was won by Fairfly, an innovative solution for automatically tracking company flights for savings opportunities, including after ticket purchase. Fairfly has enabled corporates to save money and time when booking business travel.

Following its win, Fairfly is already confirmed to return to the Business Travel Show in 2018 to exhibit, alongside more than 270 leading travel suppliers.

"Being able to showcase our solution to the audience at the Business Travel Show was an amazing experience for us which gave us exposure to a high-calibre audience," said Gili Lichtman, Co-Founder and VP Sales at Fairfly. "Winning the Disrupt Award on top of this was fantastic as it increased our exposure even further. I would encourage all business travel start-ups to apply for this one of a kind opportunity."

David Chapple, Event Director, Business Travel Show, added: “Since its launch in 2016, Launchpad has become one of the most exciting elements of the Business Travel Show. It’s an amazing opportunity for start-ups to gain exposure among the travel industry’s top names. Buyers attending the show value the opportunity to be the first to hear about game-changing new technologies.”

To apply for a free stand in the Business Travel Show Launchpad, businesses must be three years old or younger and contact Sundeep Manku at sundeep.manku@centaurmedia.com for an application form. Forms must be completed and returned by 1 December 2017 and successful applicants will be notified by 12 January 2018.